Monetary Policy Statement, 2023-24 Resolution of the Monetary Policy Committee (MPC) February 6 to 8, 2024

Summary:

The Monetary Policy Committee (MPC) has decided to keep the policy repo rate unchanged at 6.50% to maintain the disinflationary momentum and ensure that inflation progressively aligns with the target of 4% within a band of +/- 2%. The decision is based on an assessment of the current and evolving macroeconomic situation, which suggests that global growth is expected to remain steady, domestic economic activity is strengthening, and inflation is edging down from multi-decade highs. The MPC has also projected real GDP growth for 2024-25 at 7.0%, with Q1 at 7.2% and Q4 at 6.9%, and CPI inflation for 2024-25 at 4.5%, with Q1 at 5.0% and Q4 at 4.7%. The risks to the outlook are evenly balanced. The MPC will continue to monitor the situation and remain focused on withdrawing accommodation to ensure that inflation aligns with the target while supporting growth.